UK fintechs boost AI adoption as confidence in economy wanes
UK fintech founders are increasingly adopting artificial intelligence across their operations, even as confidence in the domestic economy reaches its lowest point since survey records began. The latest findings from an annual survey of UK fintech founders show a stark divide between optimism in individual businesses and deep pessimism regarding the wider economic environment.
Business confidence
According to this year's survey, 92% of fintech founders say they have strong confidence in the prospects of their own businesses, despite a challenging macroeconomic backdrop. Confidence in the UK economy, however, has slipped dramatically, with 81% of respondents expressing low levels of faith, compared to just 46% this time last year.
The uncertainty is driving more founders to consider relocating their companies overseas. The share of those contemplating a move has risen from 43% in 2024 to 46% in 2025, with high taxes the most frequently cited reason.
"This survey reveals the remarkable resilience of UK fintech founders. Even as confidence in the broader economy has fallen dramatically, founders' confidence in their own businesses has actually strengthened. This isn't misplaced optimism - it reflects their ability to innovate and adapt, even in challenging conditions. These are exactly the entrepreneurs the UK needs to drive growth, and they deserve an operating environment that matches their ambition," said Seb McDermott, Co-Chair, Fintech Founders.
Government policy
Most industry leaders remain unconvinced by government efforts to support the sector. Just 14% of founders rate the government's approach to fintech as 'good', while none consider it 'excellent'. In contrast, 47% view the government's stance as either 'poor' or 'awful' and cite continuing regulatory inefficiency and delays. Commitment to make the UK a technologically advanced financial centre has yet to translate into policy changes felt by founders.
Access to funding, challenging regulation, and volatile market conditions were named as the main constraints on sector growth.
AI adoption
The survey highlights extensive uptake of artificial intelligence by UK fintechs. 83% of founders now report using AI in their operations, and a further 9% expect to begin using it in the coming year. Over seven in ten believe these technologies will cut operating costs within the next three years.
Most founders view the shift as overwhelmingly positive. 84% see AI as an opportunity, while only 1% perceive it as a threat to their business model.
However, there are growing worries that regulation is struggling to keep up with technological advancements. 42% of founders expressed concerns that the Financial Conduct Authority is too risk-averse in its approach to AI oversight.
"The speed of AI integration identified in this new report is remarkable. It's clear that fintech founders aren't waiting for permission - they're already using AI to transform everything from customer service and fraud prevention to regulatory compliance. However, with confidence in the government's approach to fintech only at just over 50%, there is clear urgency needed to provide a governmental and regulatory framework that can keep pace and also support growth and innovation," said Willem Wellinghoff, UK Chair and Chief Compliance Officer, Ecommpay.
International outlook
Amid the rapid technology uptake, pressures to relocate remain persistent. With nearly half of founders saying they are considering a move abroad - a rise from previous years - the research points to ongoing concerns over tax and regulation in the UK.
